A forum for political discourse with a bent to the growing absurdity of it all; to watch and comment on issues in Saskatoon and the performance of elected officials and those who serve them. Easy armchair politics.
"Better to write for yourself and have no public, than to write for the public and have no self." - Cyril Connolly

Wednesday, November 9, 2011

Economy of scale?

I noted in today's SP (Nov. 9/11) that the city has increased rates for use of civic leisure facilities. The goal is to recapture 65% of the cost, starting Jan. 1/12 with daily rate of $8.30 and increasing annually by $.50 to 2015 at which time the daily rate will be $10.30.

The Leisure Services Manager states this cost is still at the lower end of the market rates. Not so if you add on the 35% the city taxpayer is contributing. Drop-in rates a private fitness centres seem to range between $7 to $15 and with that fee structure these private centres make a profit.

I know both the public and private sectors have monthly/yearly rates that are cheaper, but the city report is only dealing with the daily rate.

This poses two questions: 1) why wouldn't the city charge full recovery rates and 2) how can the private sector make a profit when their rates would be the same as the city's rates if the city charged full recovery?

I suspect the answer is the swimming pool component to the city facilities and I'm not aware any private centres that have this element. (Please correct me if I'm wrong.)

As for the taxpayer subsidizing the facilities, taxpayers have already done that through the capital contribution. Perhaps the operating costs of these facilities should be borne by the users through the rate structure.

Pools are terribly expensive to operate. Where else do you find pools other than in publicly funded facilities?

Hotels. And typically they are pretty small ones. The cost of that pool is built into the cost of the room, so essentially a "money pit (pool)" in the hotel is being "subsidized" by the profitable part of the hotel.

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About Me

I am Elaine. I'm a political junkie. I've been on the front line, now I'm on the sideline. I am no longer married to politics, but I'm still its mistress. I know its likes, its dislikes and its dirty little secrets.
I've been a door knocker, organizer, candidate, school board trustee, city councillor, and now a civic mistress.
Great moments in my career:
*after 12 years on the Saskatoon Public School Board, left with a touch of sanity;
*three times elected chair (and so far the first and only female holding that office);
*helped prevent the building a mega million dollar white elephant for central office and in lieu re-adapted a beautiful historic building in downtown Saskatoon.
Political Philosophy: Hey, those are my tax dollars your spending.